Salary versus Dividends & Other Tax Efficient Profit Extraction Strategies 2019/20 (Paperback)
Publication date: April 2019 - Plain English guide with dozens of examples and tax planning tips.
Now in its 20th edition, Salary versus Dividends is essential reading for ALL company owners and directors.
It tells you everything you need to know about paying yourself the most tax efficient mix of salary and dividends.
The guide also contains fully updated information on the best alternative profit extraction techniques:
- Directors loans - how they can be used to defer tax for an extra two years and sometimes to avoid tax altogether.
- Pension contributions - Why company pension contributions are better than dividends. Plus a chapter on putting business property into a pension.
- Rental income - Why rent is now better than dividends in many cases.
- Interest income - How company owners can pay themselves up to 6,000 tax-free.
- Company cars and motoring costs - a Plain English guide to the tax rules.
- Charity - Who should donate: you or the company?
- Capital Gains - How to pay 10% tax when you sell or wind up your company; How to pay 0% tax when you sell your company to an employee ownership trust.
These alternative techniques have become a lot more attractive following the recent increase in dividend tax rates.
There's also information on splitting income with your spouse and children and other tax saving strategies.